Gold sputters in back-to-back sessions as dollar, stocks climb
Buz Investors Gold sputters Gold is trading at $1226.90 per ounce at 10:40 GMT this morning, 0.2% lower from the New York close. This morning, the precious metal traded at a high of $1232.20 per ounce and a low of $1222.60 per ounce. Yesterday, gold traded 0.88% lower in the New York session and closed at $1229.40 per ounce, after upbeat jobs data in the US boosted expectations of a near-term interest rate hike by the Federal Reserve. Immediate downside, the first support level is seen at $1217.60 per ounce, while on the upside, the first resistance level is at $1241.20 per ounce.
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Gold futures fell in back-to-back sessions Friday, leaving the contract on pace to wrap the week little changed, as the dollar and stocks pushed higher.
April gold GCG7, -0.47% fell $9.80, or 0.8%, to $1,225.30 an ounce.
Gold’s drop on Thursday snapped a five-session streak of gains that had lifted prices to their highest level in about 13 weeks. Year to date, gold futures have gained more than 7%.
Gold tracked a higher dollar and a second day of gains for stocks tied to a teased announcement on taxes from President Donald Trump.
“The so-called ‘Trump trade’ staged a forceful comeback after the White House said it will announce the most ambitious tax reform plan since that of Ronald Reagan in the coming weeks,” said Ilya Spivak, currency and gold analyst with Daily FX.
“The U.S. dollar rose alongside Treasury bond yields on hopes that cut in corporate rates—a frequent talking point on the campaign trail—will boost growth and inflation, pushing the Fed into a steep rate hike cycle,” he said. “Predictably enough, gold prices slumped against this backdrop.”